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Twenty Four Cent Boeing Calls On A Friday Morning With A Rally On The Day of Over 400 Points.

Boeing is one stock you can mess around with on Friday mornings. It can move like $5.00 in one day and it's last day to expiring Calls and Puts often pay off big time. Here I am this morning looking at it's five chart. I like the fact it opened stronger and then came off. Look at these two "out-of-the-money" series of Calls that expire today. It's a gamble that requires Boeing to go up. That's why them are priced so cheap. A lot can happen in the next five hours of trading. Look at how it was trading at a higher price on the previous day. Notice the 60 and 62 percent drops in value on these "out-of-the-money Calls" in the first eight minutes of trading. Now this. Boeing continues to stall out. Now let's jump forward to the 2:50 p.m. time period. The deadline to get out is 3:00 p.m. ... So what is the takeaway? A strong market helped the outcome. The $.24 cent options hit a high of $.79 and the $.55 options we first looked at jumped as high a...
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Netflix Pulls Off A Monday Morning Rally And Two Back To Back Friday Afternoon Rallies. That Plus My Thoughts On All Of This Action

In a recent blog I talked about Costco taking off upwards on a late Friday afternoon. This time this blog is partly about Netflix resetting itself on a Monday morning. Netflix often makes big moves on Fridays and big moves on Monday mornings. I call it getting rebalanced. Playing the Monday moves is often not as rewarding as playing the one day Friday options because included in the option pricing is a time value component. You are paying for the luxury of five days of trading time. That makes them more expensive.
Can you see a $25.00 morning bounce from it's early morning trading lows?
I call it returning to normal. One week ago I talked about Costco shooting up on a Friday afternoon starting at about 1:30 p.m. I posted a detailed blog about it's incredible jump. Here is the chart I showed before it started to jump up.
Here is how it then closed the day.
Options purchases at 1:45 p.m. which was the period of time I highlighted on the chart paid off on spades at 3:00 p.m., perhaps the best situation I witnessed on the week. My point is Monday mornings and late Friday afternoons are often sweet spots for playng options on this stock. Now yesterdays action on Friday September 19th which carries the same theme. Here is it's one day chart.
Let's image you were lucky enough to be looking at the 1210 series of Calls around 10:15 a.m. That's when this series of Calls was trading at it's lows of the day. Here is how that series of Calls then closed on the day.
The higher up "out-of-the-money" Calls posted even more impressive gains. Here are two examples.
Is it possible for anyone to pinpoint in advance when these types of moves will happen? I think people with a passion for option trading are more in tune with knowing where to look for this kind of action. Look at the upwards jump on Pfizer last week on Wednesday Sept.17th. I did a blog catching it's biggest one morning jump of the week. I showed it's Call option prices just before and just after it's big move. Go back and read that blog if you wish.
Can I teach the world to play options? Not really. I don't want to encourage others to make reckless trades. It's a sea of sharks out there. I can only show you snippets of the action. It remains a continous learning game for everyone.

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